National Australia Bank will float its US subsidiary Great Western Bank as it looks to focus on its core Australian and New Zealand operations.
NAB expects to sell a minority stake in Great Western Bank through an initial public offering during the fourth quarter of 2014 and will look to dispose of the rest of its holding over time.
The bank bought Great Western for $US800 million in 2008 in an effort to increase its exposure to agribusiness in the US.
But new chief executive Andrew Thorburn said the NAB was looking to sell out of the business in order to focus on its core business.
"We have been clear that our strategic direction is to concentrate on building a stronger core Australian and New Zealand business and improving the experience for our customers," he said in a statement.
"As we continue to strengthen our core Australian and New Zealand franchises we've made the decision that now is the right time for a staged sale of Great Western Bank."
NAB shares gained 43 cents, or 1.2 per cent, to $35.20.
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